During and after layoffs

After a layoff has been initiated, it may be necessary for one or more employees to return to work for a short period of time, or to increase the layoff percentage or extend the layoff. This is possible to some extent. Employees can also take holiday or be registered as being on sick leave during periods of layoff. Specific rules apply to the termination of employment in connection with layoffs and to the obligation to report for work at the end of a layoff.

Work during layoffs

Employees are entitled to work during the layoff period. If the employee works for more than six consecutive weeks with regular work hours, the layoff is suspended. Further layoff will then be considered as a new layoff period and the employer must issue a new layoff notification and pay out new obligatory salary days. The employee must inform NAV of the number of hours that he or she has worked via a notification form.

Increasing the layoff percentage following commencement of a layoff period

The layoff percentage can be increased after a period of layoff has started and without any impact on the number of days during which the salary payment obligation applies. However, a further notification should be sent no later than 14 days before the increase in the layoff percentage.

NAV about unemployment benefits during layoff (in Norwegian only)

Norwegian Labour Inspection Authority on layoffs (in Norwegian only)

Extension of layoffs

As a general rule, a period of layoff which has started can be extended within the permissible layoff period. In the event of a layoff period being extended, further notification should be sent.

Sick leave during layoff

If an employee falls ill during the salary obligation period, the obligation will cease, and sickness benefit will be calculated based on the unemployment benefit basis. If an employee takes sick leave after their layoff has started, NAV will be obliged to pay sick-pay. The sick-pay will be calculated on the basis of the unemployment benefit. If the employee is still on sick leave when the layoff ends, the sickness benefit will be calculated on the basis of the employment income from this date.

Holiday during layoffs

Holiday must generally be taken as normal, also during a layoff. However, you and your employees can agree to reschedule the holiday in accordance with the provisions of the Annual Holidays Act. If an employee takes holiday during a layoff period, holiday pay must be paid for this period. Holiday does not count as layoff period.

Notice period during layoffs

Employees may be made redundant during a layoff period. They will then be entitled to return to work and receive salary during their period of notice. Employees who are laid off without salary may resign provided they give 14 days' notice. In such cases, the employee will not normally be entitled to salary during the period of notice. A different arrangement may be agreed in a collective agreement or other agreement. If the layoff period has lasted more than three months and no specific date for cessation of the layoff period has been notified, the employee will normally be entitled to leave without any notice if he or she wishes to start a new job.

Lay-off and termination

Cancelling the layoff/after the layoff period

Employees are obliged to return to work as soon as their notified layoff period is over, without any further notice from the employer being required. In the case of layoffs of unspecified duration, employees must return to work when they are requested to do so. However, employees should be given a deadline of one to two days.

Act on wage obligations during layoffs (in Norwegian only)

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